On Holding AG, the makers of the On running shoes, has recently shared its earnings report and during the call, CEO, Caspar Coppetti, communicated their goal to investors. “Our goal is to become the leading global sportswear brand by focusing on innovation, design, and sustainability” he said, while also providing an update on the company's progress towards this goal in the third quarter.
The company's results for Q3 highlighted a notable performance, backed by a top line that exceeded expectations. Net sales crossed CHF 480 million, indicating 47% growth compared to the previous year, or 58% on a constant currency basis.
On Holding AG seems to be in a robust position from a financial standpoint. They attribute this to strong brand demand, the ability to maintain premium pricing for their high-quality products, and an unwavering commitment to innovation and performance. One noteworthy observation from the call is the lack of mention of any specific weaknesses, leading to the inference of a strong financial situation.
Behind the company's success stands a variety of elements. These include effective marketing strategies, the launch of innovative products, partnerships with famous designers and influencers, and a blossoming direct-to-consumer (D2C) division. On Holding AG has also made strides in expanding its retail presence, largely through an increase in company-owned stores.
In terms of future plans, the company is steadfast in their journey of growth. They have set objectives to solidify their status as a leading global sportswear brand, boost brand recognition, extend their D2C operations, reinforce relationships with wholesale partners, increase their retail footprint, and speed up market share gains in China. According to the company, their targets for 2026 are ambitious, planning to double their net sales, exceed a gross profit margin of 60%, and attain an adjusted EBITDA margin of over 18%. These targets were outlined on the earnings call.
ONON Company info: https://finance.yahoo.com/quote/ONON/profile
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